Analyst Raises Apple Price Target, Cites ‘Rejuvenated Momentum’
Evercore Partners analyst Rob Cihra has revised his Apple (NASDAQ:AAPL) price target upwards to $700 and reiterated his “Overweight” rating based on “rejuvenated momentum” from the company’s recently refreshed iPhone and iPad product lines, reports Apple Insider. Apple released the iPhone 5C and iPhone 5S in September, followed by the iPad Air and iPad mini with Retina display in November.
According to Cihra, the new products have not only given Apple renewed momentum, they will also help the company stabilize its future gross margins. The analyst also cited Apple’s sticky ecosystem and its ability to charge premium prices for its products.
“[W]e consider mobile thin-client computing one of the most important trends in tech but also routes to reaching consumers, where Apple’s high-end demo and multiple points of unique leverage keep it king of monetization,” wrote Cihra in a note obtained by Street Insider. “Like iTunes, Apple mostly looks to monetize by driving more hardware but we also see its App Store and iOS ecosystem as increasingly leverageable sources of engagement, measures of user behavior and cross-device tools for advertising and payments in both on/offline transactions,” noted the Evercore analyst.